Museums, Zoos and Parks NAICS 7121

Nov 21, 2025 - Museums and Zoos Struggle as Visitor Numbers Decline: AAM

• Museums and zoos are facing their weakest financial outlook since the pandemic, according to the American Alliance of Museums’ 2025 Annual National Snapshot. The survey of 511 directors found 55% of institutions still below 2019 visitor levels, up from 49% last year, while 29% reported attendance declines in 2025 tied to economic uncertainty and reduced tourism. Financial performance also slipped, with only 52% reporting stronger results than pre pandemic, down from 57% in 2024. Federal funding cuts have compounded pressures: 34% lost grants or contracts, and two thirds of those losses remain unreplaced, forcing 24% to cancel student and community programs and 21% to defer facility improvements.
• While 11 services industries reported growth in October, six industries reported a contraction, including the Arts, Entertainment, and Recreation industry, according to the latest ISM Services PMI Report. Executives in the Arts, Entertainment, and Recreation industry reported decreases in business activity, new orders, employment, and inventories in October. Other industries reporting contraction during the period include Management of Companies & Support Services; Finance & Insurance; Public Administration; Other Services; and Construction. Industries reporting growth during the period were Accommodation & Food Services; Retail Trade; Wholesale Trade; Real Estate, Rental & Leasing; Health Care & Social Assistance; Utilities; Transportation & Warehousing; Agriculture, Forestry, Fishing & Hunting; Information; Professional, Scientific & Technical Services; and Educational Services. Overall economic activity in the services sector returned to expansion in October, registering 52.4%.

• According to ArtNet, museums in the US, UK, and Europe are undergoing severe financial and political pressures as traditional public funding sources decline. In the US, federal cuts under President Trump, combined with declining tourism and endowment challenges, have left institutions facing budget shortfalls. European museums, long reliant on public support, are also experiencing unprecedented cutbacks, particularly in Germany and the UK, where austerity policies and rising costs intensify strain. Beyond funding, museums face scrutiny over political expression, governance, and relevance amid shifting philanthropy and reduced donor interest from younger generations. Some institutions are developing new models, including expanding memberships, seeking endowments, or rallying public support when targeted politically, while others explore more flexible partnerships with foundations and private backers. The overall climate is marked by anxiety, heightened competition for limited resources, and uncertainty about how museums can sustain independence, community relevance, and financial stability in a changing cultural landscape.
• Museums, zoos, and parks may face challenges due to softening consumer sentiment and confidence in November and October 2025, reflecting a growing weakness in discretionary spending. The University of Michigan’s Index of Consumer Sentiment dropped 6.2% month-over-month in November's preliminary results to 50.3, a 29.9% year-over-year decline. The Current Economic Conditions Index fell to 52.3, and the Expectations Index to 49, down 36.3% annually. Year-ahead inflation expectations rose to 4.7%, while long-run expectations declined to 3.6%, with increased uncertainty across both horizons. Meanwhile, the Conference Board’s Consumer Confidence Index edged down to 94.6 from 95.6 in October, as improved current conditions (Present Situation Index up to 129.3) were offset by weaker short-term expectations (Expectations Index down to 71.5). Inflation expectations rose to 5.9%, and over half of consumers anticipated higher interest rates.